Singapore

SG More HDB flats up for rent

A growing number of HDB upgraders are getting additional income by renting out flats as they look to move into new private property, reported wealth management firm Religare.

In fact, HDB subletting deals increased by six percent to 7,891 cases between the first two quarters of 2013, according to housing board data. In Q2, a 15 percent rise in such rentals was also recorded.

The surge in subletting activities is due to a rule which requires private property owners to sell their existing property when they buy a HDB resale flat. As a result, most owners prefer to hold on to their flats, industry watchers said.

Moreover, HDB owners are eligible to buy a new private property when their flat’s Minimum Occupation Period (MOP) ends. The rise in HDB flat rentals is also supported by the availability of more private homes, particularly shoebox units.